5 Mistakes To Avoid When Starting An Online Business
Today, we’re living in an unstable economical business climate which happens to be the springboard for an uncertain future for millions of people around the world.
Robert Kiyosaki in his book “Prophecy” published back in 2002 warned us about the dangers of relying on 401(k) plans and depending on a job for retirement.
All those things kept in the dark are finally coming to the light.
So much so that news networks are publishing more and more stories about the uncertainty of retirement for most people.
The writing has been on the wall for decades and wealth advocates have been trying to educate the public about the importance of starting some type of side business that could potentially replace our day jobs.
A lot of their advice has fallen on deaf ears.
If you’ve come to the realization that retirement may not be possible without starting some type of online business, you’re reading the right article.
Accepting this reality is the first step towards securing your financial future.
Even though most online businesses cost less money to start, the same principles that apply to brick-and-mortar enterprises apply to e-bizes.
Never let anyone tell you otherwise because business is business no matter what medium you’re using to conduct it.
I congratulate you for taking the initiative to gain control over your financial future.
However, before you jump into any online business opportunity, take a few minutes to learn about the Five Mistakes To Avoid When Starting An Online Business.
Let’s unpack this…
1)) Not Understanding Your Chosen Business Model
The first mistake to avoid is rushing into a home-based business system that you know little or nothing about.
The Internet is filled with every business model and hacks under the sun.
If you subscribe to a decent number of marketing guru email lists, your Inbox will constantly get hit with product launches claiming to be the easiest way to make money online.
A large majority of the folks promoting business systems and tools haven’t actually tested them out.
In the grand scheme of things, there are countless ways to make money on the Internet.
No matter how many new ways are being introduced, there are a handful of proven business models you should consider instead of wasting your time, energy, and money on theories.
This is not to say that all of the new ways to make money are scams, but why take the risk of trying out new business models when you could hit the ground running with those that are battlefield tested and proven to work?
Modeling success is the name of the game and the wealthiest entrepreneurs already know this.
If Apple models some of their products after those that already exist, and you know they have deep pockets, you should do the same.
Examples of Ten Proven Business Models:
1: Email Marketing
2: Affiliate Marketing
3: Local Marketing
4: Publishing Kindle e-Books
5: E-commerce Stores
6: Create and Sell Information Products
7: Create Online Courses
8: Create a Niche Specific Media Network
9: Publish Other People’s Courses
10: Membership Sites
Related Article: 10 Best Ways To Make Money From Home
I’m not advocating that you operate in a bubble by ignoring the business landscape and its limitless options, because that’s a fast way to become complacent and irrelevant in the marketplace.
I’m simply saying to choose a proven business model you’re interested in first and stay focused on it until success is achieved.
Otherwise, you may fall victim to what’s called the “Skinny Object Syndrome” which is when you jump from one business opportunity to the next, never gaining traction.
This syndrome is one of the biggest reasons for online business failure, period!
In order to shortcut your search for an online business to start, I highly recommend doing research on the ten examples provided above.
Make a list of the pros and cons for each, if you’re interested in any of them, pick it, and then go for it.
2)) Not Setting Realistic Expectations
The second mistake to avoid is thinking you can go from zero to a successful Internet business in 30 days or less.
Of course, there are always exceptions to the rule.
But most end up drowning in a sea of information overload and never make a dime.
I am not saying it is impossible to make money fast from an online business.
However, business typically doesn’t work that way unless you have a very experienced mentor personally walking you through the process step-by-step.
Not to mention significant resources to help support the growth.
You must plan for a modest income for the first 3-5 months.
The key is to match your expectations with reality.
3)) Giving Up Too Soon
The third mistake is quitting a program too soon. We touched on this topic a little bit already.
After you’ve chosen a proven business model and the money doesn’t start pouring in after consistently putting in the effort, doesn’t mean there’s something wrong with the program.
Often it is a question of making minor changes, measuring the effects of the changes, and waiting for things to start happening.
Success can’t be forced and must be nurtured through a consistent process.
One of my favorite sayings is, “The Only Place Where Success Comes Before Work Is In The Dictionary?”
It doesn’t matter what analogy you want to use, the laws of business remain the same whether online or off.
You plant your seeds, nurture them, and then harvest them.
This approach applies to Internet businesses as well.
4)) Getting Involved In Unethical Business Practices
Forth mistake is engaging in unethical business practices that can land you in some serious trouble.
I will not attempt to list the plethora of shady things that people are doing on the Internet to rip others off.
If something sounds too good to be true, chances are it is.
Remember the ongoing theme of this article, which is that it takes work to make a legitimate Internet business successful.
Examples of Unethical Internet Business Practices:
- Sending Spam Emails
- Making false claims about products and services in order to deceive consumers
- Violating a platform’s Terms of Service (e.g. embedding affiliate links, spamming)
- Clickfraud (e.g. clicking on your own Google Ads)
- Blackhat Search Engine Traffic Methods
You could potentially get away with some of those unscrupulous business practices in the short term, but you may eventually get caught.
The consequences could range from getting your accounts banned to a lawsuit.
There are too many marketing gurus promoting “Push-Button” ways to make money online.
All it takes is choosing the business model that’s right for you, and sticking with it until you succeed.
There are no magic tricks, so resist the temptation of taking dishonest shortcuts.
5)) Not Taking The Time To Master The Fundamentals
The fifth mistake to avoid is not learning the basics. Some of the basic skills for succeeding with a home-based Internet business may include Product Development, Traffic Generation, Content Creation, and Converting Website Visitors into Buyers.
Most people starting an online business tend to not have a big budget and must bootstrap until it begins turning a profit.
While an e-biz requires fewer resources to get up and running when compared to a brick-and-mortar enterprise, it still has many moving parts that must be given attention to.
Fortunately, with an e-biz, you have the option of doing a lot of the work yourself if you don’t have the budget to hire employees and outsourcers to help run and grow.
Once you’re generating revenue, you could hire others to free up your time.
Then you could focus on growing your Internet business rather than working on it by doing all of the day-to-day tasks.
In the beginning, you may have to wear all of the hats in your business.
That’s okay because if you follow through and stick with the business model you chose, the payoff could be huge.
Conclusion
I hope that you gained valuable insights about some of the biggest mistakes people make when starting an online business.
A successful net business has the potential to provide you with Financial Freedom, Time Freedom, Geo-Graphic Location Freedom, Happiness, and not to mention Piece Of Mind.
And I repeat; choose a proven business model you’re interested in first and stay focused on it until success is achieved.
Then, and only then explore other proven business models if you’d like to add more income streams.
Choosing and focusing on one business model can help prevent you from jumping on the “Skinny Object Syndrome” distraction wagon.
Remember, jumping from one business model to the next is the biggest reason why most would-be entrepreneurs fail, period!
It’s no longer a secret that most people will not have enough money to retire on.
And no matter how much people care, they can’t support everyone financially.
This means you have to be proactive by creating your retirement fund because no one else is going to do it for you.
In today’s economic climate, we must become our champions and make ourselves accountable for our financial future.
If you’ve been wanting to start an online business, go for it, because time is passing you by!